All You Need to Know About Discontinuation of Rs 500 and 1000 Currency Notes

In a bold move, Indian government has decided to discontinue currency notes of Rs 500 and Rs 1000 denomination on 8th Nov, 2016. Here are some key points to

Old High Denomination Bank Notes may be deposited by individuals/persons
into their bank accounts and/or exchanged in bank branches or Issue Offices
of RBI till the close of business hours on 30th December, 2016.

Old High Denomination Bank Notes of aggregate value of Rs.4,000/- only or
below held by a person can be exchanged by him/her at any bank branch or
Issue Office of Reserve Bank of India for any denomination of bank notes
having legal tender character, provided a Requisition Slip as per format to be
specified by RBI is presented with proof of identity and along with the Old
High Denomination Bank Notes. Similar facilities will also be made available
in Post Offices.

The limit of Rs.4,000/- for exchanging Old High Denomination Bank Notes at
bank branches or at issue offices of Reserve Bank of India will be reviewed
after 15 days and appropriate notification issued, as may be necessary.

There will not be any limit on the quantity or value of Old High
Denomination Bank Notes to be credited to the account of the tenderer
maintained with the bank, where the Old High Denomination Bank Notes are
tendered. However, in accounts where compliance with extant Know Your
Customer (KYC) norms is not complete, a maximum value of Rs.50,000/- of
Old High Denomination Bank Notes can be deposited.

The equivalent value of the Old High Denomination Bank Notes tendered can
be credited to an account maintained by the tenderer at any bank in
accordance with standard banking procedure and on production of valid proof
of Identity.

The equivalent value of the Old High Denomination Bank Notes tendered can
be credited to a third party account, provided specific authorisation therefor
accorded by the said account holder is presented to the bank, following
standard banking procedure and on production of valid proof of Identity of the
person actually tendering.

Cash withdrawal from a bank account, over the counter will be restricted to
Rs.10,000/- subject to an overall limit of Rs. 20,000/- in a week for the first
fortnight, i.e., until the end of business hours on November 24, 2016.

There will be no restriction on the use of any non-cash method of operating
the account which will include cheques, demand drafts, credit/debit cards,
mobile wallets and electronic fund transfer mechanisms.

Withdrawal from ATMs would be restricted to Rs.2,000 per day per card up
to November 18, 2016. The limit will be raised to Rs.4,000 per day per card
from November 19, 2016 onwards.

For those who are unable to exchange their Old High Denomination Bank
Notes or deposit the same in their bank accounts on or before December 30,
2016, an opportunity will be given to them to do so at specified offices of the
RBI on later dates along with necessary documentation as may be specified
by the Reserve Bank of India.

Instruction is also being issued for closure of banks and Government
Treasuries, on 9th November, 2016.

In addition, all ATMs, Cash Deposit Machines, Cash Recyclers and any other
machine used for receipt and payment of cash will remain shut on 9th and 10th
November, 2016.

The bank branches and Government Treasuries will function from 10th
November, 2016.

To avoid inconvenience to the public for the first 72 Hours, Old High
Denomination Bank Notes will continue to be accepted at Government
Hospitals and pharmacies in these hospitals/Railway ticketing counters/ticket
counters of Government/Public Sector Undertaking buses and airline ticketing
counters at airports; for purchases at consumer co-operative societies, at milk
booths, at crematoria/burial grounds, at petrol/diesel/gas stations of Public
Sector Oil Marketing Companies and for arriving and departing passengers at
international airports and for foreign tourists to exchange foreign currency at
airports up to a specified amount.

New currency notes of Rs 500 and Rs 2000 be launched on 10th Nov, 2016.

No time for comments. Feel sorry for the sick bed-ridden, other handicapped & senior citizens who may find it difficult to participate in the currency exchange program. GOD have mercy on them & not seek help for this exercise through touts.